COCA asks province to protect contractors from COVID costs
The Council of Ontario Construction Associations (COCA) is calling on the provincial government to enact further measures to protect Ontario contractors that are suffering financial hardship from the COVID-19 pandemic.
In a statement, COCA says it is pleased with the government’s decision to lift the suspension of limitation periods and procedural time periods under the Construction Act. It adds, however, that many contractors also struggle with workforce availability, supply chain challenges and other productivity issues.
“In this context,” says the COCA letter, “it is difficult and sometimes impossible to meet milestones and other project deadlines.”
COCA is asking contractors to send form letters to their members of provincial parliament. The letter requests that the government review two aspects of construction project delay liability.
Specifically, it asks the government to exempt contractors and subcontractors from liability for delays caused by the COVID-19 pandemic. COCA is concerned that contractors are amassing expenses—such as for financing, insurance, bonding and equipment rentals—that continue to accrue during the time that non-essential sites are shut down. None of those costs were anticipated at the time those now-suspended projects went out to bid.
“Without remedial action by the province to insulate contractors and subcontractors from liability for delays caused by the pandemic, these contractors and subcontractors will likely be bankrupt by the time work is ready to resume,” said COCA in its April 6 letter to the government.
The first part of the solution, says COCA, is legislation or a regulation that exempts contractors and subcontractors from liability for delays caused by the pandemic.
COCA is also asking the province to work with the federal government to grant construction owners relief from financing and other costs resulting from the pandemic.
“The second part of the solution is giving relief to construction owners,” it says. “We will need construction owners to be in good economic health so construction can bounce back after the crisis has passed. Therefore, we encourage the province to work with the federal government to grant construction owners relief from financing and other costs resulting from the pandemic.”
COCA has been generally supportive of the measures being taken by the province to manage the impact of the COVID-19 pandemic—particularly as it pertains to maintaining the health and safety of people across the province. It is asking the government to act with similar foresight when managing the post-pandemic economic recovery.